Coda Octopus Group Inc (CODA) 2024 Q1 法說會逐字稿

Good morning.

早安.

Welcome to Coda Octopus Group's first quarter 2024 earnings conference call.

歡迎參加 Coda Octopus Group 2024 年第一季財報電話會議。

My name is Sherry and I will be your operator today.

我叫雪莉，今天我將成為您的接線生。

Before this call, CODA Octopus issued its financial results for the first-quarter 2024 ended January 31, 2024, including a press release, a copy of which will be furnished in our report filed with the SEC and will be available in the Investor Relations section of the company's website.

在本次電話會議之前，CODA Octopus 發布了截至2024 年1 月31 日的2024 年第一季財務業績，其中包括一份新聞稿，該新聞稿的副本將在我們向SEC 提交的報告中提供，並可在投資者關係部分取得該公司網站的。

Joining us on today's call from Coda Octopus are its Chair and CEO, Annmarie Gayle; ,its Interim CFO, Gayle Jardine.

參加今天 Coda Octopus 電話會議的有其董事長兼執行長 Annmarie Gayle； ，其臨時財務長蓋爾·賈丁(Gayle Jardine)。

Following their remarks, we will open the call for questions.

在他們發表講話後，我們將開始提問。

Before we begin, Jackie Keshner from the Gateway Group will make a brief introductory statement.

在我們開始之前，Gateway Group 的 Jackie Keshner 將做簡短的介紹性演講。

Jackie, please proceed.

傑基，請繼續。

Thank you.

謝謝。

Good morning, everyone, and welcome to Coda Octopus' first-quarter fiscal 2024 earnings conference call.

大家早安，歡迎參加 Coda Octopus 2024 財年第一季財報電話會議。

Before management begins their formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities law and involve a number of risks and uncertainties.

在管理階層開始正式發言之前，我們想提醒大家，我們今天發表的一些聲明可能被視為證券法下的前瞻性聲明，並涉及許多風險和不確定性。

As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements.

因此，我們提醒您，有許多因素（其中許​​多因素超出了我們的控制範圍）可能導致實際結果和事件與前瞻性陳述中描述的結果和事件有重大差異。

For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission.

有關我們前瞻性陳述的更詳細的風險、不確定性和假設，請參閱我們向美國證券交易委員會提交的收益報告和公開文件中的揭露內容。

We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

我們不承擔任何更新前瞻性陳述以反映前瞻性陳述做出之日後發生的情況或事件的義務或承諾，除非法律要求。

We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified in our Form 10-K for the year ended October 31, 2023, and Form 10-Q for the first quarter of this fiscal year.

我們請您參閱我們向美國證券交易委員會提交的文件，以了解我們業務的詳細披露和描述以及不確定性和其他可變情況，包括但不限於我們截至本年度的10-K 表格中確定的風險和不確定性2023 年 10 月 31 日，以及本財政年度第一季的 10-Q 表格。

You may get Coda Octopus' Securities and Exchange Commission filings free by visiting the SEC website at www.sec.gov.

您可以造訪 SEC 網站 www.sec.gov 免費取得 Coda Octopus 的證券交易委員會備案文件。

I would also like to remind everyone that this call is being recorded, and will be made available for replay via a link in the Investor Relations section of Coda Octopus' website.

我還想提醒大家，這次電話會議正在錄音，並將透過 Coda Octopus 網站投資者關係部分的連結進行重播。

Now, I will turn the call over to the company's Chair and CEO, Annmarie Gayle.

現在，我將把電話轉給公司董事長兼執行長安瑪莉‧蓋爾 (Annmarie Gayle)。

Annmarie?

安瑪莉？

Thanks, Jackie, and good morning, everyone.

謝謝，傑基，大家早安。

Thank you for joining us for our first-quarter 2024 earnings call.

感謝您參加我們的 2024 年第一季財報電話會議。

Our first-quarter 2024 results were in alignment with our internal business plan, but down on our first-quarter 2023.

我們 2024 年第一季的業績與我們的內部業務計劃一致，但低於 2023 年第一季的業績。

Our internal business plan had budgeted for our engineering business revenue for fiscal 2024 to be back loaded.

我們的內部業務計劃已對 2024 財年的工程業務收入進行了預算回載。

This is largely because of reduced availability of funding for defense programs due to the use of continuing resolutions resulting from the upcoming US elections.

這主要是因為由於即將到來的美國大選而使用持續的決議，導致國防項目的可用資金減少。

We also plan within our forecast for several booked engineering projects to be converted in revenue later in fiscal 2024 due to the lead times for receiving components.

由於接收組件的交貨時間較長，我們還計劃在 2024 財年稍後將幾個預訂的工程項目轉換為收入。

Notwithstanding these challenges, we have made some encouraging operational progress with our engineering business segment and I will discuss this later on in the call.

儘管面臨這些挑戰，我們的工程業務部門還是取得了一些令人鼓舞的營運進展，我將在稍後的電話會議中討論這一點。

Moreover, we are seeing increased order take by our UK engineering business, which had been significantly affected by delays in receiving orders in fiscal 2023.

此外，我們看到英國工程業務的訂單量有所增加，該業務因 2023 財年接收訂單的延遲而受到嚴重影響。

While the marine technology business revenue was down at $3.5 million compared to $3.8 million in the first quarter of 2023, I am pleased with the recovery progresses that this part of our business is making.

雖然海洋技術業務收入從 2023 年第一季的 380 萬美元下降至 350 萬美元，但我對我們這部分業務正在取得的復甦進展感到滿意。

In the first quarter, we saw increased future utilization of our rental assets, which I am very encouraged by and this trend is continuing.

在第一季度，我們看到租賃資產的未來利用率有所增加，我對此感到非常鼓舞，並且這種趨勢仍在繼續。

Notable in the first quarter is that outright sales in Asia, a key strategic market for this segment, fell by 26%.

第一季值得注意的是，該細分市場的關鍵策略市場亞洲的直接銷售額下降了 26%。

A contributor factor to this is weak demand from China caused by macroeconomic factors and increased geopolitical tensions.

造成這種情況的一個因素是宏觀經濟因素和地緣政治緊張局勢加劇導致中國需求疲軟。

Encouragingly though, margins have continued to improve in the marine technology business.

但令人鼓舞的是，海洋技術業務的利潤率持續提高。

Continued progress in the marine technology business is critical to our growth plans.

海洋技術業務的持續進步對我們的成長計劃至關重要。

As such, I will give a brief overview of what we are currently seeing in the marine industry.

因此，我將簡要概述我們目前在海洋產業所看到的情況。

The industry's biggest trade show is Oceanology, which occurs every two years and took place last week.

該行業最大的貿易展是海洋學展，每兩年舉辦一次，並於上週舉行。

We therefore anticipated in our first quarter that outright sales would be down as typically customers postponed significant investment decisions until after this event.

因此，我們預計第一季的直接銷售額將會下降，因為客戶通常會將重大投資決策推遲到該事件之後。

Fiscal 2023 results were impacted by the downturn in offshore renewable projects due to inflation, higher interest rates and supply chain problems.

由於通貨膨脹、利率上升和供應鏈問題，海上再生能源項目低迷，影響了 2023 財年的業績。

It has recently been reported that Equinor and Ørsted have both now received provisional contracts in New York's fourth offshore solicitation.

最近有報導稱，Equinor 和 ärsted 均已在紐約第四次海上招標中獲得臨時合約。

We're further encouraged by seeing increased inquiries for our rental solutions for offshore renewables.

我們看到對我們的海上再生能源租賃解決方案的詢問增加，這進一步鼓舞了我們。

Although these are early days, this is good news for the marine industry and certainly for us.

儘管現在還處於早期階段，但對海洋產業來說是個好消息，當然對我們來說也是。

We're also seeing increased opportunities for some significant underwater construction projects in the Middle East where some new islands are scheduled for development in calendar year 2024.

我們也看到中東一些重大水下建設項目的機會增加，一些新島嶼計劃於 2024 年開發。

Moving to our first-quarter 2024 overview.

現在進入我們的 2024 年第一季概覽。

During the first quarter of 2024, we continued to make progress against our key growth drivers.

2024 年第一季度，我們在主要成長動力方面繼續取得進展。

As I mentioned, we saw increased traction for our Echoscope rental solutions.

正如我所提到的，我們看到我們的迴聲鏡租賃解決方案越來越受歡迎。

We also made good progress in advancing the DAVD tethered system customization and hardening program.

我們在推動 DAVD 系留系統客製化和強化計畫方面也取得了良好進展。

And based on the ongoing evaluation, we have received overridingly positive feedback on the system and its potential.

根據正在進行的評估，我們收到了對該系統及其潛力的非常積極的回饋。

We're also encouraged by the engagement we're seeing with the customer and the pace of the program.

我們也對客戶的參與度和專案的進度感到鼓舞。

This is good news, and we are on track to receive the final tranche of funding of $1.25 million in our second quarter.

這是個好消息，我們預計在第二季收到最後一筆 125 萬美元的資金。

Following a fleet-wide survey by the Navy of the users who were previously allocated DAVD tethered systems, we received broader positive feedback from the various current users.

海軍對先前分配 DAVD 系留系統的使用者進行了全艦隊調查後，我們收到了來自各個當前用戶的更廣泛的積極回饋。

It is also interesting to note that the feedback from users cited the Echoscope as game changing for their operations.

有趣的是，使用者的回饋稱迴聲鏡改變了他們的操作規則。

Furthermore, three new Navy user groups have requested from their respective commands, DAVD and Echoscope as part of their operations and existing commands have also put in request for additional systems.

此外，三個新的海軍用戶組已向各自的司令部請求 DAVD 和迴聲鏡，作為其行動的一部分，現有司令部也請求提供額外的系統。

This is great news for the success of the DAVD technology and our company.

這對 DAVD 技術和我們公司的成功來說是個好消息。

We also had our first sale of the DAVD tethered system system outside of the US Navy to a large Asian offshore service provider, which is involved in underwater construction and digging, who is also looking at the broader adoption of this technology for their operations.

我們也首次向美國海軍以外的一家大型亞洲離岸服務提供者出售了 DAVD 系留系統，該系統從事水下施工和挖掘，他們也在考慮在其營運中更廣泛地採用該技術。

This is a high-profile project and the local environmental agency will be involved.

這是一個備受矚目的項目，當地環保機構將參與其中。

This provider intends to create a core of super users and then look at a more systemic adoption of the technology, providing their initial project is successful.

該提供者打算創建一個超級用戶核心，然後考慮更有系統地採用該技術，前提是他們的初始專案取得成功。

We continue to work with several offshore service providers globally on their plans for adopting the DAVD, some of these are waiting for internal management decisions on funding.

我們繼續與全球多家離岸服務提供者合作，制定他們採用 DAVD 的計劃，其中一些正在等待內部管理部門關於資金的決定。

In February, we had success -- we had a successful series of demonstrations of our Echoscope, DAVD technology and the digital audio communications system to several bodies in Texas.

二月份，我們取得了成功——我們成功地向德克薩斯州的多個機構展示了我們的迴聲鏡、DAVD 技術和數位音訊通訊系統。

These include the Fire Service, Department of Transport and other law enforcement agencies where our technology is being assessed for bridge inspection, port and harbor security, search and rescue, and diving support.

其中包括消防局、交通部和其他執法機構，我們的技術正在接受橋樑檢查、港口安全、搜救和潛水支援的評估。

The demonstration was well received by this potential community of users, and we are working with them on progressing their interest in our solution.

該演示受到了潛在用戶社群的好評，我們正在與他們合作，以提高他們對我們的解決方案的興趣。

We are continuing to work with Naval Information Warfare Center, NIWC, as they advance the selection of their sensor package for the VideoRay Defender, and we have provided proposals for accessing the technology for extended operational trials.

我們將繼續與海軍資訊戰中心 (NIWC) 合作，推動 VideoRay Defender 感測器包的選擇，我們已經提供了使用該技術進行擴展運行試驗的建議。

We believe these trials will see start in April 2024.

我們相信這些試驗將於 2024 年 4 月開始。

In addition, we continue to work with a foreign Navy on integrating our Echoscope technology on the VideoRay Defender, which they have also adopted.

此外，我們繼續與外國海軍合作，將我們的迴聲鏡技術整合到 VideoRay Defender 上，他們也採用了這項技術。

The safety and electrical assessment of our digital audio communications systems, Voice Hub-4, has now been completed by the Navy, and they are expected to start trials in April.

我們的數位音訊通訊系統 Voice Hub-4 的安全和電氣評估現已由海軍完成，預計 4 月開始試驗。

Our engineering business is making progress in key areas.

我們的工程業務在關鍵領域取得進展。

We are pursuing two significant opportunities for our Thermite mission computers for two new applications and we are now awaiting the completion of these negotiations.

我們正在為我們的鋁熱劑任務計算機尋求兩個新應用的重要機會，我們現在正在等待這些談判的完成。

The relevant trials with our Thermite Octal were completed pre-COVID, but these programs had stalled due to the pandemic.

我們的 Thermite Octal 的相關試驗已在新冠疫情爆發前完成，但這些項目因疫情而陷入停滯。

I am very pleased that these are now advancing and securing these programs will be meaningful to our group.

我很高興這些專案現在正在推進，並確保這些專案將對我們的團隊有意義。

The success of Thermite will mean diversification of revenues for the engineering business and improve the margins.

Thermite 的成功將意味著工程業務的收入多元化並提高利潤率。

We have also received a small batch order for two new defense programs of record.

我們還收到了兩個新的國防計劃的小批量訂單。

The significance of this, however, is that these are two new programs which are likely to go into the production phase in this fiscal year.

然而，這樣做的意義在於，這是兩個新項目，很可能在本財年進入製作階段。

This is a key component of success in the engineering business operations, which depends on expanding the number of programs that it supplies proprietary sub-assemblies [into].

這是工程業務營運成功的關鍵組成部分，這取決於擴大其提供專有子組件的專案數量。

Our UK engineering business is also seeing an uptick in its order take and has received orders for two new programs relating to mine hunting autonomous vehicles and a new line of military land vehicles.

我們的英國工程業務的訂單量也有所增加，並收到了兩個與掃雷自動駕駛車輛和新的軍用陸地車輛系列相關的新項目的訂單。

We believe the results of the engineering business will improve in fiscal 2024, a significant part of this segment's revenue is back loaded.

我們相信工程業務的業績將在 2024 財年有所改善，該部門收入的很大一部分已回載。

Let me now turn the call over to our Interim CFO, Gayle Jardine, to take you through our financials before I provide my closing remarks.

現在讓我將電話轉給我們的臨時財務長蓋爾賈丁 (Gayle Jardine)，在我發表結束語之前，他將向您介紹我們的財務狀況。

Thank you, Annmarie, and good morning, everyone.

謝謝你，安娜瑪麗，大家早安。

Let me take you through first-quarter 2024 financial results.

讓我帶您了解 2024 年第一季的財務表現。

Starting with revenue, in the first quarter of 2024, we recorded total revenue of $4.5 million compared to $5.6 million in the first quarter of 2023, a reduction of 20.3%.

從營收開始，2024 年第一季我們的總營收為 450 萬美元，比 2023 年第一季的 560 萬美元減少了 20.3%。

The marine technology business, or products business generated revenue of $3.5 million compared to $3.8 million, a 7.4% decrease from the first quarter of 2023.

海洋技術業務或產品業務的收入為 350 萬美元，較 2023 年第一季的 380 萬美元下降 7.4%。

Our marine engineering business or services business generated revenue of $0.9 million compared to $1.8 million, a 48.2% reduction from the first quarter of 2023.

我們的海洋工程業務或服務業務產生的收入為 90 萬美元，而 2023 年第一季為 180 萬美元，減少了 48.2%。

As reported earlier by Annmarie, the decline in our consolidated revenue was largely as a result of the service businesses' reduced orders and supply chain issues, which have impacted the short-term ability to convert boot engineering projects to revenue in the current quarter.

正如Annmarie早些時候報導的那樣，我們合併收入的下降主要是由於服務業務訂單減少和供應鏈問題造成的，這影響了本季將啟動工程項目轉化為收入的短期能力。

Moving on to gross profit margin.

轉向毛利率。

In the first quarter of 2024, we generated gross profit of $3.1 million compared to $3.8 million in the first quarter of 2023.

2024 年第一季度，我們的毛利為 310 萬美元，而 2023 年第一季為 380 萬美元。

Gross margin was 69.2% versus 67.1% in the first quarter of last year.

毛利率為 69.2%，去年第一季為 67.1%。

In our marine technology business, gross margin increased 72.5% in the first quarter of 2024 compared to 72.2% in 2023, reflecting changes in the mix of sales and the lower commission costs recorded in the first quarter of 2024 due to the reduction in our price sales in Asia.

在我們的海洋技術業務中，2024年第一季的毛利率較2023年的72.2%增長72.5%，反映了銷售組合的變化以及2024年第一季因價格下降而錄得的佣金成本降低在亞洲的銷售。

Our marine engineering business gross margin increased to 56.4% in the first quarter of 2024 versus 56.0% in the first quarter of 2023, again, reflecting the mix of sales.

我們的海洋工程業務毛利率從 2023 年第一季的 56.0% 增至 2024 年第一季的 56.4%，再次反映了銷售組合。

Now moving to our operating expenses.

現在轉向我們的營運費用。

Total operating expenses for the first quarter of 2024 rose slightly to $2.5 million compared to $2.4 million in the first quarter of 2023.

2024 年第一季的總營運支出小幅上升至 250 萬美元，而 2023 年第一季為 240 萬美元。

Our selling, general and administrative costs in the first quarter of 2024 totaled $2.0 million, an increase of 4.2% over approximately $2.0 million in the first quarter of 2023.

2024 年第一季我們的銷售、一般和管理成本總計 200 萬美元，比 2023 年第一季的約 200 萬美元增加了 4.2%。

As a percentage of revenue, our selling, general and administrative costs for the first quarter of 2024 was 4.58% compared to 35.1% in the first quarter of 2023.

2024 年第一季我們的銷售、一般和管理成本佔收入的百分比為 4.58%，而 2023 年第一季為 35.1%。

This increase was expected.

這一增長是預料之中的。

As we've previously stated, that due to the significant progress we've made in R&D in the last four years, we are now focused on aligning a significant portion of our resources and strategy from recession development to global business development, brand building and investor relations.

正如我們之前所說，由於過去四年我們在研發方面取得了重大進展，我們現在專注於調整我們的大部分資源和策略，從經濟衰退發展到全球業務發展、品牌建立和投資者關係。

We expect the SG&A to increase after we hired new staff in key areas and realized an increase in our payroll costs.

在我們在關鍵領域僱用新員工並意識到工資成本增加後，我們預計 SG&A 將會增加。

In addition, we're still working on expanding our management team, and this will also increase our SG&A expenditure.

此外，我們仍在努力擴大我們的管理團隊，這也將增加我們的SG&A支出。

We believe these investments will increase shareholder value as we continue our focus on increasing sales across our whole group.

我們相信，隨著我們繼續專注於增加整個集團的銷售額，這些投資將增加股東價值。

Operating income in the first quarter of 2024 was $0.6 million compared to $1.3 million in the first quarter of 2023, a reduction of 58.7%.

2024 年第一季營業收入為 60 萬美元，較 2023 年第一季的 130 萬美元減少 58.7%。

Operating margin was 12.4% compared to 24.1% in the first quarter of 2023, driven by the change in revenues as explained previously.

如前所述，由於收入變化，營業利潤率為 12.4%，而 2023 年第一季為 24.1%。

Net income before taxes in the first quarter of 2024 was $0.8 million compared to $1.4 million in the first quarter of 2023.

2024 年第一季稅前淨利為 80 萬美元，而 2023 年第一季為 140 萬美元。

Net income after taxes in the first quarter of 2024 was $0.6 million, or $0.06 per diluted share share compared to $1.4 million or $0.12 per diluted share in the first quarter of 2023.

2024 年第一季的稅後淨利為 60 萬美元，即稀釋後每股收益 0.06 美元，而 2023 年第一季稅後淨利為 140 萬美元，即稀釋後每股收益 0.12 美元。

Moving now to our balance sheet.

現在轉向我們的資產負債表。

As of January 31, 2024, we're $25.0 million in cash and cash equivalents on hand and no debt.

截至 2024 年 1 月 31 日，我們手頭上有 2,500 萬美元現金和現金等價物，沒有債務。

This represents an increase of $0.6 million from October 31, 2023, with the comparable figure was $24.4 million.

這比 2023 年 10 月 31 日增加了 60 萬美元，而可比較數字為 2,440 萬美元。

Our working capital increased to $40 million from 37.6 million as at October 31, 2023.

截至 2023 年 10 月 31 日，我們的營運資金從 3,760 萬美元增加到 4,000 萬美元。

I will now turn the call back over to Annmarie for closing remarks.

現在，我將把電話轉回給安瑪麗，讓她發表結束語。

Thank you, Gayle.

謝謝你，蓋爾。

I want to close by emphasizing that we continue to work to create stable, long-term shareholder value.

最後我想強調，我們將繼續努力創造穩定、長期的股東價值。

In the 2024 fiscal year, there are a number of key management goals for our business to achieve with a focus on growth.

在 2024 財年，我們的業務有許多以成長為重點的關鍵管理目標。

We have a compelling calendar of prestigious business development activities in 2024 with a focus on defense applications and defense programs.

我們制定了 2024 年引人注目的著名業務發展活動日曆，重點關注國防應用和國防項目。

Some of our goals include achieving revenue in fiscal year 2024, which exceeds our 2023 revenue, continuing to seek to increase the number of programs that are our Echoscope technology is embedded in, continuing to prior to rise and engage in the DAVD untethered system customization and hardening program with a goal of securing the technology's adoption by the Special Forces community in late calendar year 2024 or early 2025.

我們的一些目標包括在 2024 財年實現收入，超過我們 2023 年的收入，繼續尋求增加嵌入我們的 Echoscopy 技術的程序數量，繼續在 DAVD 不受限制的系統定制和強化計劃的目標是確保特種部隊在2024 年末或2025 年初採用此技術。

Continuing to work to ensure the successful rollout and adoption of the DAVD tethered system to the market, both in the defense and commercial market, supporting the rollout and adoption of the digital audio communications solution, continuing to work towards returning the engineering business to its pre-COVID $10 million revenue profile, and we are seeing some traction with new programs which will assist in achieving this goal, expanding the group's management team and capabilities.

繼續努力確保 DAVD 系留系統在國防和商業市場上成功推出和採用，支援數位音訊通訊解決方案的推出和採用，繼續努力使工程業務恢復到正常狀態-新冠疫情帶來的收入達到1000 萬美元，我們看到新計劃的一些吸引力，這將有助於實現這一目標，擴大集團的管理團隊和能力。

This is ongoing, continuing to develop our pipeline of candidates under our M&A strategy with a goal of acquiring complementary value-accretive technologies into our portfolio.

這項工作正在進行中，根據我們的併購策略，繼續開發我們的候選人管道，目標是將互補的增值技術納入我們的產品組合中。

We continue to believe in the growth prospects and strategy built around our disruptive technologies.

我們仍然相信圍繞我們的顛覆性技術建立的成長前景和策略。

It is our strategy to focus on penetrating the defense market with these technologies, including seeking the inclusion of our imaging sonars in the new generation of underwater vehicles and securing the adoption of the DAVD untethered systems by the Special Forces.

我們的策略是專注於利用這些技術滲透國防市場，包括尋求將我們的成像聲納納入新一代水下航行器中，並確保特種部隊採用 DAVD 無線系統。

By adopting this strategy, it pivots the revenue model of the marine technology business to a multi-year and multi-sale model as we have started to see with the DAVD product line.

透過採用這項策略，它將海洋技術業務的收入模式轉向多年和多次銷售模式，正如我們在 DAVD 產品線中開始看到的那樣。

Though it could take several years for these programs to mature, we continue to believe this is the best strategy for our business growth prospects.

儘管這些計劃可能需要幾年時間才能成熟，但我們仍然相信這是我們業務成長前景的最佳策略。

Therefore, we believe that our near-term growth will be incremental but solid.

因此，我們相信我們的近期成長將是漸進式但穩健的。

We are also committed to returning the engineering services business operations to its pre-COVID $10 million revenue profile.

我們也致力於將工程服務業務營運恢復到新冠疫情爆發前 1,000 萬美元的收入狀況。

And we have started to see new programs entering they're pre production basis.

我們已經開始看到新的節目進入預製作階段。

To conclude, we would like to thank our shareholders for their continued support.

最後，我們要感謝股東的持續支持。

We are now happy to answer your questions.

我們現在很高興回答您的問題。

Operator?

操作員？

(Operator Instructions)

（操作員說明）

Brian Kinstlinger, Alliance Global Partners.

Brian Kinstlinger，聯盟全球合作夥伴。

Great, thanks.

萬分感謝。

I've got a handful of questions.

我有幾個問題。

You've talked about last earnings call as well as this earnings call about industry cancellation, shelving of major offshore renewable projects due to inflation, higher interest rates and supply chain problems.

您談到了上次的財報電話會議以及本次的財報電話會議，內容涉及行業取消、由於通貨膨脹、利率上升和供應鏈問題而擱置的主要海上可再生能源項目。

I think you mentioned a few positive signs, but maybe from a high level, do you think we're seeing meaningful progress in terms of negotiating the terms as it relates to electricity pricing resets for the rates?

我認為您提到了一些積極的跡象，但也許從高層來看，您認為我們在與電價重置相關的條款談判方面是否看到了有意義的進展？

Hi, Brian.

嗨，布萊恩。

Thank you for that question, it's Annmarie.

謝謝你提出這個問題，我是安瑪莉。

Look, I think why we are not directly involved in those discussions, they are not at the table there.

聽著，我想為什麼我們不直接參與這些討論，他們並不在場。

What I can see from where I'm sitting in our business, we're seeing increase in demand for our Echoscope solution into offshore renewables.

從我所在企業的情況來看，我們看到海上再生能源對 Echoscopy 解決方案的需求不斷增加。

If you recall, actually, Brian, I think it was 2019, I think, we did $25 million.

Brian，如果你還記得的話，我想那是 2019 年，我們賺了 2,500 萬美元。

And that year, what was different in that year, we were on almost all European offshore renewable projects.

那一年，與那一年不同的是，我們幾乎參與了所有歐洲海上再生能源計畫。

What I'm saying to you now, what I am seeing in terms of the utilization rate for rental, it is very, very encouraging.

我現在對你們說的是，我所看到的租賃利用率，非常非常令人鼓舞。

We saw that in the quarter, we see that continuing in Q2 and really, at the moment, we have to potentially look at expanding our rental assets because -- and a lot of these projects are offshore renewables and construction.

我們在本季度看到，我們看到這種情況在第二季度繼續，實際上，目前我們必須考慮擴大我們的租賃資產，因為其中許多項目都是海上再生能源和建築。

So I definitely think that there are positive signs that some of these programs are going forward.

因此，我絕對認為有積極的跡象表明其中一些計劃正在取得進展。

Great.

偉大的。

And then you highlighted Oceanology, where I'm sure you got to demonstrate your technology.

然後你強調了海洋學，我相信你必須在其中展示你的技術。

In the past, when do you see the impact on new orders from this conference?

過去您認為這次會議對新訂單的影響是什麼時候？

Is it a couple of months, a couple of quarters?

是幾個月還是幾季？

Maybe give us a sense for the sales cycle post this conference?

或許能讓我們了解這次會議後的銷售週期？

Well, you know, what we noted in the first quarter is that sales from Asia continued to be down.

嗯，你知道，我們在第一季注意到亞洲的銷售額持續下降。

And although China [placed apart], so does Japan and South Korea, where we saw reduced demand.

儘管中國[排名分開]，但日本和韓國的需求也有所下降。

So -- and I think back to that market will purchase in Q2, not necessarily China because we've lost visibility of demand from China.

因此，我認為市場將在第二季購買，不一定是中國，因為我們已經失去了中國需求的可見度。

But I feel high level or high sense of confidence that Japan and South Korea will start and Singapore will start picking up following the show.

但我對日本和韓國將開始以及新加坡將在展會結束後開始復甦感到高度或高度信心。

Great.

偉大的。

In terms of the DAVD tethered and untethered products, you gave a lot of information.

關於 DAVD 系留和非系留產品，您提供了很多資訊。

What are the next goal posts?

下一個目標是什麼？

You mentioned the sales of your first commercial sale -- sorry for the tethered system.

您提到了您的第一次商業銷售的銷售額 - 對於系留系統感到抱歉。

What's the contract value of that program?

該計劃的合約價值是多少？

And when do you expect the actual revenue contribution to rapidly increase?

您預計什麼時候實際收入貢獻會快速增加？

How should we think about that timing?

我們該如何考慮這個時機？

Well, you know, Brian, thank you for that question, because then, you know -- and I think there needs to be more alignment with expectations of what we're doing.

嗯，你知道，布萊恩，謝謝你提出這個問題，因為那時，你知道 - 我認為需要與我們正在做的事情的期望更加一致。

So DAVD is a program and it's now a program of record.

所以 DAVD 是一個程序，現在它是一個記錄程序。

So DAVD started 2019.

2019 年 DAVD 就這樣開始了。

It took five years to mature before we had the system going through evaluation and now being on the approved Navy use list.

我們花了五年時間才讓該系統通過評估，現在已列入批准的海軍使用清單。

Now what I am excited about, Brian, is the fact that that passive revenue stream that I've spoken about, year in year out, we're now seeing that because we are seeking existing commands, putting in request for more equipment, more DAVD tech solutions.

布萊恩，現在令我感到興奮的是，我年復一年談到的被動收入流，我們現在看到了這一點，因為我們正在尋求現有的命令，請求更多設備，更多DAVD 技術解決方案。

And also we are seeing new commands putting in request for DAVD.

我們也看到新的命令提出了對 DAVD 的請求。

So I'm very, very excited about that.

所以我對此非常非常興奮。

Whilst I can't give you a number of what that will mean, last year for the tethered system, we did $3 million.

雖然我無法告訴您這意味著什麼，但去年我們為系留系統投入了 300 萬美元。

This year, within our internal plan, we have $4.5 million.

今年，根據我們的內部計劃，我們有 450 萬美元。

And I've always said that growth will be incremental for the DAVD.

我一直說 DAVD 的成長將是漸進的。

What will be pivotal in terms of getting those numbers up will be to have of not just the US Navy, but foreign Navy also acquiring the solution.

提高這些數字的關鍵不僅是美國海軍，外國海軍也必須獲得解決方案。

And we know that that is a meaning for the untethered system, for example, we are funded jointly between the US Navy and an allied Navy, a significant allied Navy.

我們知道這對不受束縛的系統來說是有意義的，例如，我們是由美國海軍和盟軍海軍、重要的盟軍海軍共同資助的。

So implicitly, they're on that adoption trading with us.

因此，他們隱含地正在與我們進行收養交易。

So I think what I am seeing is, and I'm excited about, as I said, the program for the DAVD tethered system.

所以我認為我所看到的是 DAVD 系留系統的計劃，正如我所說，我對此感到興奮。

Going forward, it's passive revenues, we don't need to do any business development.

展望未來，這是被動收入，我們不需要做任何業務開發。

It's on the approved Navy list and they're just buying equipment.

它在批准的海軍清單上，他們只是購買設備。

And that's what I talked about for this business quite a lot.

這就是我對這項業務多次談論的內容。

So overall, I think this year, we're trying to do $4.5 million.

總的來說，我認為今年我們的目標是 450 萬美元。

And another thing I'd like to mention on the DAVD to that I see, and it's very encouraging for our company, is the level of engagement we are enjoying with the key customers on the program.

我想在 DAVD 上提到的另一件事是我所看到的，這對我們公司來說非常令人鼓舞，那就是我們與該計劃的主要客戶的參與程度。

It's been -- one of the barriers always is the sense that it goes much slower, but we've seen them doing several dives with the untethered system.

障礙之一始終是感覺速度要慢得多，但我們已經看到他們使用不受束縛的系統進行了幾次潛水。

All of the feedback overridingly positive for the business.

所有回饋對企業來說都是極為正面的。

And we don't feel there are huge hurdles for us to overcome in terms of the technology, its fitness for purpose and the past that we are going down.

我們認為，在技術、其用途的適用性以及我們正在經歷的過去方面，我們不存在需要克服的巨大障礙。

So overall, I continue to believe is that the DAVD will be significant for our group and it's one of our disruptive technologies in the market.

總的來說，我仍然相信 DAVD 對我們集團來說意義重大，它是我們在市場上的顛覆性技術之一。

Great.

偉大的。

Thanks for that.

感謝那。

That's helpful.

這很有幫助。

Turning to the services or engineering business, you were very clear that you hope to get it back to the pre-COVID levels, which was $9 million to $12 million.

談到服務或工程業務，您非常明確地希望將其恢復到新冠疫情之前的水平，即 900 萬至 1200 萬美元。

The federal government has essentially been in a continuing resolution almost every year since I've been following, which is 20 years.

自從我關注以來，聯邦政府幾乎每年都在持續制定決議，已經過了 20 年。

Notwithstanding the longer lead times, what else have been the limiting factors to that recovery?

儘管交貨時間較長，但還有哪些因素限制了復甦？

Well, the main thing is that every time -- first of all, every time, there is the upcoming elections, that's clear you'll never get your federal budget through, and that's the real background to the continuing resolution.

嗯，最重要的是，每次 - 首先，每次，即將到來的選舉，很明顯你永遠不會讓你的聯邦預算通過，這就是持續解決方案的真正背景。

So it just means that you -- for programs that they're not optimally funded and you've got to make choices.

所以這只是意味著你——對於那些沒有最佳資助的項目，你必須做出選擇。

When we get a pot of money, some will go to x and some will go to y, but not the amounts that's contracted.

當我們得到一筆錢時，有些會流向 x，有些會流向 y，但不是合約規定的金額。

So that's what we're seeing.

這就是我們所看到的。

But the biggest factor for, for example, the engineering business, has been the pace at which the new programs go forward.

但對於工程業務等領域來說，最大的因素是新專案的推進速度。

So what I reported, for example, on the US engineering side, we have two new programs now, which is going into its pre-production phase.

所以我所報道的，例如，在美國工程方面，我們現在有兩個新項目，正在進入預生產階段。

We've now got the small batch orders and why I'm excited about this and see the promise of returning the business to the $10 million, is though these parts that now we've received the small batch orders for are for established programs of record.

我們現在已經收到了小批量訂單，為什麼我對此感到興奮並看到了將業務恢復到 1000 萬美元的承諾，因為我們現在收到的小批量訂單的這些零件是用於既定項目的記錄。

And the engineering part is a result of obsolescence.

工程部分是過時的結果。

What that means is that the production quantities likely to be larger because they'll be retrofitting those for the assets in the field.

這意味著生產數量可能會更大，因為他們將針對現場資產進行改造。

So I'm really super, super excited about those two programs that we have back there.

所以我對我們在那裡的兩個項目感到非常非常興奮。

And they're on with -- now received, as I said, the pre-production order, the valuation patch.

正如我所說，他們現在收到了預生產訂單和估值補丁。

And we expect the back end of this year that we will get the production orders.

我們預計今年底將收到生產訂單。

So that's on the US side.

這是美國方面的情況。

In the -- on the UK side for engineering business, last year, revenues were significantly down because of the -- it's like the priorities had shifted for the main customers and they were really pursuing a lot of land-based applications.

在英國方面，去年的工程業務收入大幅下降，因為主要客戶的優先事項似乎已經轉移，他們實際上正在追求大量的陸基應用程式。

But what we are seeing now is an uptick of those orders that were meant to come through, some of them are coming through.

但我們現在看到的是，原本要完成的訂單增加，其中一些正在完成。

And we are -- that business is quoting also a lot at the moment.

我們——該公司目前也在大量報價。

So I am excited about that part of the business.

所以我對這部分業務感到興奮。

And also, as I mentioned before, the Thermite, it's a good example, Brian, you know, we had to really major opportunities for the Thermite pre-COVID and those had stalled and stalled and they have now just come back on the table.

而且，正如我之前提到的，鋁熱劑，這是一個很好的例子，布萊恩，你知道，在新冠疫情之前，我們必須為鋁熱劑提供真正的重大機會，而那些機會已經停滯不前前，現在又回到了桌面。

And those, again, will be good opportunities for business because now, it's in the production phase, that -- not the design phase for our business.

這些，再一次，將是很好的商業機會，因為現在，它處於生產階段，而不是我們業務的設計階段。

So the limiting factor has really been more a bit of COVID, the slowness, the recovery from COVID.

因此，限制因素實際上更多的是新冠病毒，即從新冠病毒中恢復的緩慢。

But also the engineering business, they go through different phase from they get a new program, where they are doing the design phase, it's pretty small.

但工程業務也是如此，從獲得新程序開始，他們經歷了不同的階段，他們正在進行設計階段，規模相當小。

But once that is written into the program and then you get the production orders, that's really what gives us the kick.

但是，一旦將其寫入程式並獲得生產訂單，這才是真正為我們帶來動力的原因。

And that's really where we are with these new programs.

這就是我們這些新計劃的真正所在。

Of course, for that business, it has to continue expanding the number of new programs it is supplying proprietary parts into.

當然，對於該業務，它必須繼續擴大為其提供專有零件的新項目的數量。

But I feel we're in a good spot now with recovery COVID.

但我覺得我們現在正處於新冠疫情康復的良好狀態。

And then also last year where we saw a lot of land-based application, we're now seeing seeing more and more naval requirements coming through and have won some orders there.

去年，我們看到了很多陸基應用，現在我們看到越來越多的海軍需求，並贏得了一些訂單。

So two more, one was a follow-up to that one.

還有兩本，其中一本是那一本的後續。

In terms of the two programs that are hopefully going to go into production in the US as well as the new awards in the UK, is there any way, at least in total to size, what these mean?

就有望在美國投入製作的兩個節目以及在英國獲得的新獎項而言，至少在總體規模上，有什麼辦法嗎？

Are these contributors of each $1 million or a couple of hundred thousand dollars?

這些捐款者每人是一百萬美元還是幾十萬美元？

It's hard to understand the magnitude of the impact of these collective programs.

很難理解這些集體計劃的影響有多大。

Yes.

是的。

So the way to really think about the orders is that first -- there are a number of things because it's not just about the upfront production quantities you get today, it is the fact that this is repeat orders that you get over the time.

因此，真正考慮訂單的方法是，首先，有很多因素，因為這不僅僅是您今天獲得的前期生產數量，而是您在一段時間內獲得的重複訂單。

So at any one point, like these two new programs that we had in the US, I think that that will drop probably be around $4 million for that business.

因此，在任何時候，就像我們在美國實施的這兩個新計劃一樣，我認為該業務的損失可能會下降 400 萬美元左右。

And then -- on the UK side, that's about $2 million.

然後——在英國方面，大約是 200 萬美元。

Those are lifetime value or?

這些是終身價值還是？

No, those are not lifetime values.

不，這些不是終生價值。

Those are initial values that we expect.

這些是我們期望的初始值。

I can see why you think the recovery is ahead.

我明白為什麼你認為復甦即將到來。

And then lastly, on the balance sheet, which is obviously healthy, what investments are the companies -- is a company making to accelerate the adoption of your technology?

最後，在顯然健康的資產負債表上，公司進行了哪些投資，以加速採用您的技術？

Is it hiring more salespeople, marketing professionals?

是否僱用更多的銷售人員、行銷專業人員？

Just maybe highlight where you think you can invest to help accelerate adoption of your product?

也許只是強調您認為可以在哪些方面進行投資以幫助加速產品的採用？

Great question, Brian.

好問題，布萊恩。

So I think I'm pleased to report we've made really, really good progress since we last spoke.

因此，我想我很高興地報告，自上次談話以來，我們已經取得了非常非常好的進展。

So we've now successfully, and I don't have permission to identify the group, but we have now successfully hired a focus group in the US, a very, very well-established focused group in the defense space.

所以我們現在已經成功了，我沒有權限識別該組織，但我們現在已經成功地在美國聘請了一個焦點小組，這是一個在國防領域非常非常完善的焦點小組。

And the whole idea of that US focus group will be to provide better understanding of the opportunities we are pursuing, helping us to map the opportunities and model the opportunities more clearly, which I'll expand on once we have that.

美國焦點小組的整體想法將是更好地了解我們正在追求的機會，幫助我們更清晰地繪製機會圖和模型，一旦我們有了機會，我將對此進行擴展。

In addition, the focus group will help us with identifying new programs and making sure we're not missing any programs and generally, strategy.

此外，焦點小組將幫助我們確定新計劃，並確保我們不會錯過任何計劃和整體策略。

So very, very excited.

非常非常興奮。

We will have our kickoff with that focus group, April 1.

我們將於 4 月 1 日與該焦點小組啟動。

And I'm pleased that they will be very impactful for our business.

我很高興它們將對我們的業務產生非常大的影響。

They're well experienced in this area.

他們在這方面經驗豐富。

In addition to that -- and that will be a significant investment for our business, very, very significant in terms of the cost for our business.

除此之外，這將是我們業務的一項重大投資，就我們的業務成本而言，非常非常重要。

In addition to that, one of the things we've been looking for is a leader for our DAVD tethered system technology in Europe.

除此之外，我們一直在尋找的 DAVD 系留系統技術在歐洲的領導者之一。

And I'm pleased to report that we are close to completing back agreement with this candidate.

我很高興地報告，我們即將與這位候選人達成協議。

And this candidate will be based in the Netherlands where we have the top 20 dredges in the world there.

這位候選人將駐紮荷蘭，那裡擁有世界排名前 20 的挖泥機。

So it's a significantly location for us.

所以這對我們來說是一個重要的位置。

And these things take time because you want to make sure that the person has the right access, the right experience.

這些事情需要時間，因為你想確保這個人有正確的訪問權限和正確的體驗。

So long and short, Brian, we are continuing to invest significantly in on business development and expanding our management team.

總之，布萊恩，我們將繼續在業務發展和擴大我們的管理團隊方面進行大量投資。

So a management team, not only are we short to [pursue] CFO, but the biggest thing for our business is senior personnel and marketing and futures officer for the vision and strategy of our business.

所以一個管理團隊，我們不僅缺乏[追求] CFO，而且對我們的業務來說，最重要的是高階人員和行銷和期貨官，以實現我們業務的願景和策略。

So we will be investing heavily in expanding our management team, which I think by this year, we have the full complement of the team that can help us to pivot to where shareholders want us to pivot, but it does take time.

因此，我們將大力投資擴大我們的管理團隊，我認為到今年，我們將擁有完整的團隊，可以幫助我們轉向股東希望我們轉向的方向，但這確實需要時間。

Great.

偉大的。

Actually, just one more, the focus group, is that a third party you're hiring or is that a team you're hiring to be part of Coda?

實際上，還有一個焦點小組，是您正在僱用的第三方，還是您正在僱用的作為 Coda 一部分的團隊？

It's a third-party team that provides this service.

提供此服務的是第三方團隊。

Got it.

知道了。

Thank you so much.

太感謝了。

But we also get allocated a number of personnel to work with.

但我們也分配了一些人員一起工作。

Great.

偉大的。

Thank you, Annmarie.

謝謝你，安瑪莉。

You're welcome.

不客氣。

(Operator Instructions) With no further questions at this time, I would like to turn the conference back over to Annmarie Gayle for closing remarks.

（操作員指示）目前沒有其他問題，我想將會議轉回給安瑪麗·蓋爾（Annmarie Gayle）進行閉幕致辭。

Thank you very much, everyone, for your continued interest in Coda.

非常感謝大家對 Coda 的持續關注。

Thank you for your continued support also and have a great day.

也感謝您一直以來的支持，祝福您有美好的一天。

Thank you, everyone.

謝謝大家。

Thank you.

謝謝。

This will conclude today's conference.

今天的會議到此結束。

You may disconnect your lines at this time, and thank you for your participation.

此時您可以斷開線路，感謝您的參與。